FBN Holdings’ half-year profit rises 45% to N66bn

FBN Holdings plc has said its profit before tax rose by 45 percent in the half-year ended June 30, 2022, compared to the same period a year earlier.

The holding company for First Bank of Nigeria Limited recorded a profit before tax of N66 billion, up from N45.2 billion in the first half of 2021, according to its unaudited financial results.

“FBN Holdings continues to demonstrate resilient performance despite the challenging operating environment with an impressive improvement in revenue and profitability,” Nnamdi Okonkwo, group managing director of FBN Holdings, said.

According to him, gross earnings grew by 22 percent year-on-year to N359.2 billion.

“Furthermore, we continue to see good progress across our performance metrics, which remain in line with our focus on driving sustainable growth,” he added.

Okonkwo said the group remained committed to its transformation drive, which had resulted in a stronger balance sheet and better asset quality with non-performing loans closing at 5.4 percent at half-year 2022.

“Similarly, risk management capability remains robust across the group supporting the drive for enhanced earnings for sustainable capital accretion. During the period, cost to income ratio remained flat year on year despite the inflationary and currency pressure, as we continue to focus on optimising overall efficiency,” he said.

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“Amidst a challenging operating and dynamic regulatory environment in half year 2022, the commercial banking group remained focused on executing key initiatives to position the group for improved profitability in the full year 2022. Our half-year results further reinforced our drive towards our ‘Quantum Profitability Leap’ agenda,” Adesola Adeduntan, chief executive officer of First Bank of Nigeria, said.

He said the gross earnings rose 22.6 percent year-on-year to N338.5 billion and net interest income was up 49.3 percent year-on-year to N152.9 billion respectively.”

Adeduntan said, “On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40.0 percent year on year to N60.0 billion, whilst profit after tax also grew by 42.3 percent year on year to N53.3 billion as the bank continues to reap the dividends of the successful restructuring of our balance sheet and revamping of our risk management architecture.”

“We continue to record progress in driving down our non-performing loan ratio which now stands at 5.4 percent at the end of H1 and we are on target to bring it within the regulatory limit of 5 percent by end of full-year 2022.”